Investment platform provider AJ Bell (AJB) rang a note of confidence in its first set of financial results since its December market debut, as chief executive Andy Bell suggested a public quote would help to boost long-term brand awareness. In the event, Mr Bell told us “the real public relations benefit came in the run-up to the IPO”, which partly explained a decision to slow the pace of the listing process.
Of course, AJ Bell’s reputation was rising long before 2018. So too were profits, a trend that continued in the six months to March despite choppy equity markets. A 9 per cent rise in customer numbers pushed revenues as a percentage of assets under management from 20.7 to 22 basis points in the period. That, together with a 4 per cent increase in assets under management, fed through to a 32 per cent jump in operating profits.
However, the mood was dampened by the revelation that political uncertainty has impacted client behaviour. Echoing a recent update from trading group IG Group (IGG), dealing activity fell 14 per cent year on year. Until this picks up, Mr Bell reckons low dealing costs and annual charges should put his platforms out in front of any investors looking to switch.
Numis expects earnings per share of 7.3p in the 12 months to September, rising to 9.4p in FY2020.
| AJ BELL (AJB) | ||||
| ORD PRICE: | 415p | MARKET VALUE: | £1.69bn | |
| TOUCH: | 414-419p | 12-MONTH HIGH: | 483p | LOW: 162p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 65 | |
| NET ASSET VALUE: | 18.1p | NET CASH: | £55.8m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018* | 42.9 | 13.9 | 2.9 | 1.46 |
| 2019 | 50.1 | 17.7 | 3.5 | 1.50 |
| % change | +17 | +27 | +23 | +3 |
| Ex-div: | 06 Jun | |||
| Payment: | 28 Jun | |||
| *EPS and DPS comparatives reflect share reorganisation at IPO | ||||
